- Jane Street Group and Jump Trading are reportedly retreating from crypto trading in the United States.
- The top market makers decided to retreat in light of the crackdown on crypto by U.S. regulators.
- Jane Street will also scale down its crypto operations globally, while Jump Crypto is seeking to expand international crypto operations.
Popular market-making firms Jane Street Group and Jump Trading are significantly scaling down their crypto trading activities in the United States. The top market makers are reportedly retreating from the American crypto market in light of the crackdown on the crypto industry by regulators in the country.
Jane Street Plans To Scale Back Crypto Operations Globally
According to a report by Bloomberg, the hostile stance of regulators against crypto firms in the United States has prompted Jane Street and Jump Crypto to pull back from the country. A person familiar with the matter revealed that Jane Street is planning to go one step further and scale back its crypto operations around the world. The regulatory uncertainty around crypto has reportedly made it difficult for the company to comply with internal standards.
As for Jump Trading’s digital asset-facing unit Jump Crypto, the retreat from crypto will be limited to the United States. Two people familiar with the matter told Bloomberg that the market-making firm is planning to expand its international crypto trading operations. Both firms are reportedly still involved in market-making for crypto but on a smaller scale. The market makers have declined to comment on the report.
The crackdown campaign on crypto renewed at the beginning of 2023 with multiple federal agencies, including the Securities and Exchange Commission (SEC) and the Commodities and Futures Trading Commission (CFTC), initiating enforcement actions against crypto firms. Both market makers were named in a probe launched by the U.S. Department of Justice in March 2023 to investigate the collapse of Terra last year. Jane Street also made an appearance in a civil enforcement action brought by the CFTC against Binance last month.